Source: Brokerage China
Recently, HSBC's latest "Emerging Markets Investment Intentions Survey" (hereinafter referred to as the "Survey") showed that China's new round of measures to promote economic growth has boosted overall investor confidence in Emerging Markets. Coupled with the increased attractiveness of investments in China's Technology Sector and other positive factors, global institutional investors surveyed are particularly Bullish on the prospects of the Chinese market.
According to the survey results, when asked about the "Emerging Markets" expected to grow the fastest in the next 12 months, one-quarter of the institutional investors surveyed chose China, which ranks first among Emerging Markets economies.
Bullish outlook for Emerging Markets.
The HSBC survey shows that about half (45%) of surveyed institutional investors believe that the strong performance of the Chinese market is the biggest Bullish factor for the prospects of Emerging Markets, a significant increase from 29% in the previous survey in December last year.
At the same time, more than one-third (34%) of the surveyed institutional investors believe that the outlook for the Chinese stock market is more optimistic than that of other Emerging Markets, and this proportion has risen by 15 percentage points compared to the last survey. Based on this view, the Chinese stock market was listed by respondents as their preferred investment choice in Emerging Markets recently.
"Investors hold an optimistic attitude towards the growth prospects of the Chinese market. This not only reflects the market's confidence in China's efforts to boost economic activity but also demonstrates the positive impact brought by the increased attractiveness of investing in the Technology Sector, as well as market expectations for more economic stimulus policies," said Murat Ulgen, Global Head of Emerging Markets Research at HSBC, in the report.
Moreover, surveyed institutional investors remain optimistic about the effects of China's economic stimulus measures. They believe that, both in the short term and long term, these measures will have a positive impact on China's economic outlook and help achieve economic growth targets.
It is understood that the "Emerging Markets Investment Intent Survey" was conducted from January 24 to March 12, 2025, with over 100 investors from 125 Institutions completing the survey. The total scale of the Emerging Markets Asset Management involved reached 439 billion USD.
New opportunities in the Global market for the second quarter.
Recently, there has been widespread market attention on new opportunities in the Global market for the second quarter. During the sharing of the 2025 second quarter global investment outlook, HSBC Global Private Banking and Wealth Management's Chief Investment Officer for China, Kuang Zheng, stated that despite the pressure from USA tariffs, several markets in Asia possess strong internal demand dynamics, allowing them to maintain a competitive edge.
"In Asia, we are Bullish on China Stocks, and have increased our allocation to Asian market Stocks. Additionally, we are also Bullish on the three markets of Singapore, Japan, and India," Kuang Zheng stated previously.
Specifically, China's Technology is developing rapidly and is expected to create huge opportunities across multiple Industries. "Japan benefits from moderate inflation and improved corporate earnings prospects, while India is supported by strong structural growth trends and government stimulus measures, and Singapore has attractive valuations and dividends which are also Bullish for market performance," Kuang Zheng stated.
Due to the uncertainty of USA tariff news causing market speculation, earlier Analysts also anticipated that the market will continue to experience volatility in the near term.
In March of this year, considering the still fragile market sentiment after the downturn in the USA stock market, as well as the possibility that investors may further diversify their allocation to markets outside the USA, HSBC downgraded its view on USA Stocks to neutral, while simultaneously downgrading the view on Global Equity to neutral.
AI may continue to benefit.
In mid-February of this year, HSBC upgraded its view on Chinese Stocks to bullish. "AI drivers and users are likely to continue benefiting, and more stimulus policies may lead to a broader market reassessment, bullish for Consumer, Financial, and Industrial Sectors," HSBC pointed out at that time.
Earlier, the emergence of DeepSeek sparked a reassessment of the prospects for AI development in China, also driving rapid global development in AI and innovation, while AI applications and supporting policies in China and other Asian markets are prompting enterprises and governments to increase investments to maintain competitiveness.
However, although the opportunities related to AI are eye-catching, it is difficult to ignore the fact that inflation pressures, global geopolitical tensions, and policy uncertainties remain the main risks in the global market for the second quarter of this year.
Kuang Zheng stated that investment in Software and automation is expected to grow further, and demand for Datacenters continues to rise, which will drive demand for Energy and infrastructure, "We believe that there are rich opportunities in the Technology, Communications, and Industrial sectors of the Asian market."
Editor/rice
